If desired spending is less than output, then firms:
A) accumulate their inventories and cut production.
B) deplete their inventories and cut production.
C) deplete their inventories and increase production.
D) accumulate their inventories and increase production.
A
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According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. Undetected counterfeit U.S. currency being held by the public both at home and abroad will impact the level of
A) M1. B) the money multiplier. C) the reserve ratio. D) commodity money.
Firms in an oligopolistic market ________ because they are ________
A) attempt to predict the behavior of other firms; strategically interdependent B) form cartels; unable to predict the behavior of other firms C) ignore other firms' actions; strategically independent D) advertise; unable to differentiate their products.